Dealing With Success

Smart Business Thinking by Jim Whelan

Dealing With Success

“When the gods wish to punish us, they answer our prayers.”

Oscar Wilde

Your business is built on a passion to be an expert. This is true whether launching a new, or growing your existing business.

Many times this passion is not enough to succeed. Building a business requires a strategic plan based on a clearly defined end objective. 
Many small business owners eventually realize they have to learn business growth and management skills.

Some of the ways that you can succeed and stay for the long run are: 

1.     Understanding finances - Financial experience tends to be a weak link in many small businesses. Assuming you are in business to make money, develop an understanding of finances that affect the business.

• Cash Is King. Understand the difference between profits and cash. Profit is an accounting concept while cash pays bills. Rely on a cash flow spread sheet and an account receivable report to keep close tabs on positive cash flow. 

2.     Make changes in operations to accommodate growth – “Back of the envelope” wont carry you far. A "Shoebox Bookkeeping" system is overcome quickly. Look at the way you do business and identify changes that could make a major impact on the way you operate.

3.      Use technology in innovative ways - Look for ways to integrate technology to improve your business. Another industry may be using a system that you can modify for yours.

4.     Control operations expenses - Search for businesses that are using effective models and emulate their operations. Seek out advice from your mastermind or business group.

5.     Keep head count low – Consider new employees a long-term commitment. Hire only when you absolutely must.

6.     Mentally prepare you for success  - As counter-intuitive as it seems, the possibility of success keeps some business owners awake at night.

The Bottom Line

Create a plan that projects a successful business.

You can only manage what you can control. Develop an overall system of controlling the various aspects of your business to build a successful business.

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

If a Shoebox is Your Bookkeeping System, What Happens When Business Picks Up? Smart Business Thinking by Jim Whelan

Smart Business Thinking by Jim Whelan

If a Shoebox is Your Bookkeeping System, What Happens When Business Picks Up?

When starting a business you wear all the hats. Since you’re in business to make a profit, finance is one of your responsibilities. Keeping track of income and outflow is the only way to keep score, and that involves a bookkeeping or accounting system. Set up the system as one of the essential first steps starting the business. 

Many thanks to John Bowen, Bookkeeping & MoneyManagement, of Arlington as he unraveled the complexities of bookkeeping for a small business at The Arlington Chamber of Commerce’s recent Roundtable.

 John uses a step-by-step method of selecting the appropriate bookkeeping/accounting system.

Questions to ask in setting up a bookkeeping system:

·      Step #1.  Determine the type of legal entity to establish: Corporation, Partnership, Sole Proprietor,
     or LLC?

·      Step #2.  Will you have Employees, use Independent Contractors, or hire Subcontractors?

·      Step #3.  Will you collect Sales Tax? Need to Track Inventory?

·      Step #4.  Do clients/customers pay immediately or in stages?

Common problems small businesses experience are:

a.  Keeping up to date on income includes tracking when invoices are sent, paid, and deposited.

b.  Prompt reconciliation of bank and credit card statements is essential. It is easier to catch an error in one month than searching through three or more months for the problem.

Popular Software options:

QuickBooks    Pro (Windows) and for Mac  $180

·      Broad array of reports (including complete balance sheet)

·      Handles employees and independent contractors   (prints W-2s and 1099s)

·      Handles sales tax

·      Tracks inventory

Quicken Deluxe (Windows) $60 and Quicken Essentials for Mac  $50

·      Can combine personal and business transactions, and do reports on each

·      Better for downloading

·      Better for tracking investments

·      Can include personal and business bank and credit card accounts

Quicken Home and Business (Windows)  $90

·      Does invoices and tracks receivables

·      Tracks sales tax

Cloud:  QuickBooks online  ($40 per month)

·      Expensive but is efficient if more than one location is using the system

The Bottom Line

The time to set up the booking/accounting system is at the start and set it up for the business it is going to be.

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Mastermind – Quite Possibly your Business’s Most Effective Growth Strategy – Smart Business Thinking

Smart Business Thinking by Jim Whelan

Mastermind – Quite Possibly The Most Effective Business Growth Strategy – Smart Business Thinking

CEOs and entrepreneurs focused on improved performance frequently are alone. They should investigate a mastermind group because it connects them with like-minded people. Otherwise, it’s easy to get isolated and stray from business basics.

Mastermind is outlined in Napoleon Hill’s book Think and Grow Rich. Hill studied the richest men of the early 1900’s and wrote the book detailing his observations. 

One of the common practices of those wealthy men was that they took part in a mastermind, helping each other solve problems.

The following are three elements of a mastermind group. Providing an idea of how they work and whether or not they might be for you.

1 – A Mastermind is about helping each other solve problems and move forward in their goals.

A mastermind group is not a networking group, a support group, or an advisor board.  

2 – A Mastermind generates ideas and resources.
A Mastermind uses the education, experience, and influence of the others in the group. When a committed group of business CEOs gives their full attention to one person and her strategic goals, all kinds of ideas are generated. Resources and connections are often discovered in the process.

3 – Masterminds are effective because you expand beyond your old limits.

When you join a Mastermind group, you know it’s not going to be about staying in your comfort zone. In fact, this is one of the biggest reasons people want to take part in a Mastermind! They know that success rarely comes from inside their comfort zones.

The Bottom line?
A mastermind alliance takes effort, commitment, and leadership. As in every endeavor, the results are proportionate to the involvement expended. It is only for those who see the possibilities.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Are You Playing Home or Away Games? - Smart Business Thinking

Smart Business Thinking by Jim Whelan

Are You Playing Home or Away Games?

When underdogs break the rules.

The impetus for this topic came from a New Yorker article by Malcolm Gladwell “How David Beats Goliath”. Gladwell cites examples of adversaries who won (1) by using unconventional tactics and (2) overcame high odds through persistent effort.

If David had fought by Goliath’s rules (with sword and armor) he would have been defeated because he didn’t know how. Instead, he fought a way he knew, shocking and conquering Goliath. 

In the same context, small businesses need a game plan to figure out the benefit they bring to clients and play home games, David's, rules not away games, Goliath's conventional rules.

By employing effort and persistence, David (Small Businesses) consistently beats Goliath (Competitors).

Strategies to use that bring in clients and increasing profits:

·      People need to feel important and successful. Trust is critical.

Small business can play by their rules: actively maintain the personal touchstay on a first name basis, and be flexible to accommodate the client.

·      Constantly looking for ways to improve. Small business has the flexibility to try a new approach and drop it if it doesn’t work.

·      Know your fundamental strengths and your competitor’s weaknesses. Know your Goliath – the Internet is the tool to use to know your competitor.

·      Social media can level the playing field. Use LinkedIn, Twitter and Facebook to build relationships.

·      Know why you are in business. Small businesses face the temptation to wander down the wrong road. Concentrate on the outcome.

·      Market by educating the public and establish yourself as an expert.

Bottom Line

When small businesses focuses on:

• winning
• not how convention says the contest should be played
• the competitor is not prepared for the surprise and thrown off base
• David wins. 

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Statistics Tell, Stories Sell – Smart Business Thinking

Statistics Tell, Stories Sell – Smart Business Thinking

 Joe Mann, of Arlington based More Web Leads,  is skilled and experienced in marketing, but wanted assistance with financial management and business planning and turned to Smart Business Thinking.

Joe consults with many roofing contractors across the country. He had a customer that was agitated because the business had hit a plateau. Joe urged the customer to take immediate action following a big storm that damaged many roofs in the area. That advice resulted in substantial business.

At a regional meeting of roofing contractors, Joe told that story. The contractors related the story to their life experience and to their business needs. A prospect he had been wooing for three months signed up.

I told Joe's story when an associate asked recently, “Jim, Why do you tell so many stories?”

People remember the essence of the story and the takeaway message more fully than quoting statistics. They draw a mental picture as the story unfolds and relate that story to their life or experience. 

If you visit earlier posts that spin a story what comes to your mind?

•  A bump in the road – A plan to reach your vision must be flexible and adjust to external events

•  The sakes process – Every employee and every system must be focused on increasing revenue

•  Buying a washing machine – Listening to the customer is essential to achieve customer satisfaction

Are you in the market for new customers? Don't you think that a story of customer success that describes the problem, what you did to solve it, the successful result would resonate with a prospect? Don't you believe that effort would go right to the bottom line enhancing your profits?  

Bottom Line?

•                Stories are the best way to convey your message

•                Make your point by drawing a word picture incorporating your message is very powerful

•                Client success stories i.e. the problem, solution, and result resonates with a prospect 

•                Personal challenge met shows your mettle

Give it a try, You'll be surprised at the results.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits,improve performance.   

A Lesson Learned From a Client – Smart Business Thinking

A Lesson Learned From a Client – Smart Business Thinking

Working with innovative and resourceful business owners is a learning experience. Many use their imagination to solve a problem they’ve never thought about.

Here’s one where two therapists, new to running a business, used creative thinking to get their hands around a problem.

The two young therapists who had worked together decided to start a practice in Arlington. They are excellent therapists, with a practiced home-based plan to reduce childrens’ stress. The idea made sense, and their marketing plan had merit.

They had worked only as employees, so they had no experience running a business. And they soon faced a typical start-up problem: the business was not generating enough cash to pay expenses and their salaries.

The partners attended one of my presentations on starting and growing a business. A week later they asked for help to create a smooth-working practice with sustainable growth.

Needless to say, they were perplexed. They struggled to figure out the weakness in the practice's cash flow.

Then came their lesson in ingenuity. To understand their dilemma, they bought a Monopoly game and used the money to understand what was happening to the cash flow.

They placed the money in two categories – revenue & expenses. The exercise drew a stark picture and yet it was the age-old problem for small businesses – not enough revenue to cover their spending.

That solved their quandary but not the cash imbalance.

To put the company on an even keel I instituted:

·      A marketing plan to increase revenue

·      A maximum allowable spending limit

·      A scheduled reduction of outstanding debt

·      A cushion for unanticipated needs

Then I worked with them on a strategic plan:

·      Establish the vision

·      Identify the milestones

·      Concentrate on the outcome

They envisioned their practice expanding from Arlington to a 30-mile radius in Northern Virginia.

Milestones included:

·      Increase the client capacity to 100 children

·      Add the number of therapists to achieve that growth

·      Expand office facilities to include space for caregiver education

Bottom Line?

1.     Develop a business mindset to focus on building long-term success.

2.     Use whatever tools come to mind that will advance the solution.

3.     Plan for the future thereby making decisions on current issues that are in line with the vision.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Conquer That Dreaded Fear - Smart Business Thinking

Conquer That Dreaded Fear - Smart Business Thinking

The other day I had coffee with Brenda Teal, Founder of The Teal Center for Therapeutic Bodywork, Ltd (client) a massage therapy practice in Arlington, VA. Brenda expressed a fear like many CEOs and solo business owners - the fear of speaking in front of an audience. Usual symptoms are

·      Sweaty palms

·      Shaky hands

·      Sleepless nights

·      Dry mouth

·      Racing thoughts

·      Pounding heart

·      Forgetting what you had to say

 If you hit a bump in the road when you're asked to speak, Toastmasters is the resource to turn to. It is a non-profit organization committed to helping people eliminate fear of public speaking. 

Toastmasters International is a world leader in communication and leadership development. Members improve their speaking and leadership skills by attending one of the clubs.

 In Arlington VA there are 25 clubs to choose from. The meetings typically last one hour and are designed to support all levels of speakers.

Membership in Toastmasters is one of the greatest investments you can make in yourself. At $36 every six months, it is also one of the most cost-effective skill-building tools available anywhere.

While there are no guarantees in life, I promise, after three months, you will loose the butterflies and you will be on the way of being comfortable standing st the podium.

Full Disclosure – I am a member of the Challenger Toastmaster Club in Arlington. I have been a Toastmasters member for 15 years and have marveled at the progress many people have made overcoming their fear of speaking.

Bottom Line?

Get yourself to a Toastmasters meeting.

Invest $6 per month in your self-improvement

Check out Toastmasters International to find a club near you.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Implement Now Perfect Later – Smart Business Thinking

Implement Now Perfect Later – Smart Business Thinking

In a conversation with Alison Carroll, of Alison Carroll Coaching (client) , an Arlington based business coach about a book she read, she admitted, “The funny thing is that I have been working on an article on the book. It’s late because I’ve been trying to get it just perfect.” 

A “writer’s block” for many CEOs is the compelling need to perfect everything from communications to taking action. Don’t get me wrong I’m not saying every output shouldn’t reflect excellence.

 It should make sense but an English or a management professor is not grading it. It holds back revenue growth.

Here's some instances to illustrate the impasse:·      

• Mental anguish over language such as should it be everybody or everyone
• What shade blue should we use in the logo
• It’s not ready, it needs a finishing touch

The reasons for delay are endless.

• A solo business owner who wanted to start speaking before business groups was frozen in inaction because he constantly changed "improve" the presentation
• A CEO wants to improve working conditions yet business is too good to take the time
• Partners debate over bringing a senior associate into the partnership so long that another firm makes an offer.

The quest for perfection hinders action and, as a result, progress. Be correct but agonize over the minute details?

Bottom Line?

Stop worrying about minutia.
Make sure your communications are effective – it doesn’t have to be letter perfect.
Complete that proposal or other projects although there might be a more perfect word to use.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.